Brazil readies major concession plan for bilateral bridges

Brazilian President Luiz Inácio Lula da Silva's administration plans to kick off a major concession plan for bilateral bridges.

The government is looking to offer 12 contracts – seven for existing bridges, two for ones under construction and three to be built from scratch, a spokesperson at the transportation ministry told BNamericas.

The goal with the concessions is to reduce operating and maintenance costs while also being part of Lula's plan for greater South American integration.

"The type of contract to be offered will likely generate interest from medium-sized construction firms, but the question remains as to whether all 12 bridges will actually become concessions," João Cortez, a partner at infrastructure consultancy Vallya, told BNamericas.

"Some of these bridges are part of [road] sections where there may not be much traffic to guarantee sufficient toll cash flow for whoever takes on the contract, so it’s likely that we will also have some PPPs [with the government contributing some funding]," said Cortez.

The first contract to be offered is a concession for the bridge connecting São Borja in Rio Grande do Sul state with Argentina’s Santo Tomé.

The 1.4km bridge was opened in 1997 and is operated by concessionaire Mercovía, and is the only binational bridge currently under a concession.

The government is planning to publish the tender notice in the coming weeks and hold the auction in December.

The new concession will require investments of US$45.6mn, including works to improve the access roads in both countries.

The bridge is one of the main trade routes between Brazil and Argentina, and it also serves as a connection for cargo transportation through Chile and Peru. In 2022, the bridge was used for around 40% of bilateral trade by road.

The other six existing bridges are:

-Uruguaiana bridge, which links Uruguaiana in Rio Grande do Sul with Paso de los Libres in Argentina.

-The Franco-Brazilian binational bridge, connecting Oiapoque in Amapá state and Saint-Georges in French Guiana.

-Amizade bridge, linking Brazil’s Foz do Iguaçu with Ciudad del Este in Paraguay.

-Integração bridge, which connects Foz do Iguaçu to Paraguay’s Presidente Franco.

-Tancredo Neves bridge, linking Foz do Iguaçu with Argentina’s Puerto Iguazú.

-Barão de Mauá bridge, connecting Saguaro in Rio Grande do Sul and Rio Branco in Uruguay.

Next year the government plans to offer the concessions for Uruguaiana, Amizade and Tancredo Neves. The government has not yet unveiled the exact dates for these tenders and has not disclosed when the concession processes will be launched for the other bridges.

The three new bridges are:

-Guajará-Mirim connecting Brazil’s Rondônia state to Guayaramerin in Bolivia.

-A bridge linking Porto Xavier in Rio Grande do Sul with San Javier in Argentina.

-A bridge connecting Rio Grande do Sul's Jaguarão to Rio Branco in Uruguay.

The bridges under construction are:

-One linking Assis Brasil in Acre state with the Peruvian city of Iñapari.

-One connecting Porto Murtinho in Mato Grosso do Sul to Paraguay’s Carmelo Peralta.